Who is responsible for paying the interest on a PLUS loan while the student is in school?

In the case of a PLUS loan, the responsibility for paying the interest during the time the student is in school lies with the borrower, who is typically a parent. PLUS loans are designed to help parents cover the cost of their child's education, so the parent is considered the borrower. This means that while the student is enrolled at least half-time in school, it is the parent's obligation to manage the interest that accrues on the loan.

Unlike other federal student loans, such as Direct Subsidized or Unsubsidized Loans, where the federal government may pay for interest during certain periods, the PLUS loan does not provide for such a benefit. Instead, the interest begins accruing once the loan is disbursed. Thus, parents need to be prepared to pay this interest while their child is still in school, unless they choose to defer payments, in which case the accrued interest would be added to the principal amount when repayment begins after graduation.